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    US, EU oppose India's subsidy cut waiver proposal

    Synopsis

    ​​​The US and EU have argued that the proposal before the World Trade Organisation (WTO) – which seeks to exempt countries with national incomes below a specific threshold level — will allow most developing countries to remain exempt from subsidy cuts.

    subsidyAgencies
    The United States and the European Union have opposed India’s proposal to exempt certain developing countries from reduced fisheries subsidies.

    The US and EU have argued that the proposal before the World Trade Organisation (WTO) – which seeks to exempt countries with national incomes below a specific threshold level -- will allow most developing countries to remain exempt from subsidy cuts.

    India had proposed four criteria for the exemptions.

    It said countries with gross national income (GNI) below $5,000 per capita for three consecutive years, those having a share in global marine capture of below 2%, and those with more than 10% share of agriculture, forestry and fisheries sectors in their gross domestic product (GDP), should be eligible.

    Countries that engage in distant water fishing should be ineligible for the exemption, according to the proposal.

    “Developed countries have objected to the four criteria. They have asked how GNI and GDP are related to fishing subsidies. Similarly, they also had concerns on distant water fishing,” an official said.

    New Delhi has argued that GNI and GDP are development indicators and that GNI is already part of the WTO subsidies agreement.

    WTO members are negotiating to finalise disciplines to eliminate subsidies for illegal, un-reported and unregulated (IUU) fishing, and to prohibit certain forms of fisheries subsidies that contribute to overcapacity and overfishing.

    “Developed countries want to deny and restrict special and differential treatment (S&DT) to small and artisanal fish people only,” the official said.

    India’s approach is a transitional one, but some developing countries have sought permanent S&DT in fisheries subsidies.

    Certain Latin American countries, including Argentina, Columbia, Peru and Uruguay, have also flagged their concerns regarding India’s proposal.

    “Many developing countries’ approaches may be different, but the goal is the same. The biggest challenge for developing countries is to remain united in S&DT,” the official said.

    Developed countries are keen to finalise the pact by December-end, even as other members, especially least developed countries, have raised concerns at the hurry to conclude the negotiations at the cost of a quality agreement, the official added.

    OBJECTION RAISED
    • · US, EU oppose India’s proposal on fisheries subsidy cuts exemption
    • · India proposed 4 criteria to exempt developing countries’ fisheries subsidies
    • · EU, US question GNI, share of farm in GDP parameters
    • · Object to share in global marine capture, distant water fishing
    • · India says GDP, GNI globally accepted development indicators
    • · India seeks to protect small fish peoples’ livelihood
    • · LatAm countries flag concerns over India’s proposal


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    ( Originally published on Oct 02, 2020 )
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